A Tale of Two
Bay Area Condo Investors

 

                  In 2003, two young men graduated from Cal Berkeley in Oakland, California. 

 

              They were much alike – both were above average students  – and as young college graduates are – they were filled with ambition and dreams for the future. 

 

               As it turned out, both men happened to purchase the same condominium unit (#504) in a building located at 2407 Telegraph Ave over the next 21 years. 

 

                             Here’s how each man fared on his purchase

                                                of Condo Unit #504

 

               Even though there were signs the CA housing market was over-priced and nearing a top, one man purchased Unit #504 for 380,000 in Sept 2004. 

 

                Following a subsequent 55% fall in CA housing prices, the property went into foreclosure and back to the bank – for a total loss of his 2004 investment. 

 

                After watching the market go down for five years, the other man observed bottoming signs that the price decline was likely over – so he purchased Unit #504 in October 2010 for $62,000 (via a short-sale from the bank).

 

               Today this man has his property listed for sale at $389,000.  

 

                                                  ::::::

 

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